SUSTAINABILITY REPORT Cont’d FY2022 Key Material Matters’ Risks and Opportunities Theme Material Matter Risk Opportunity Upholding Good Governance and Economic Resilience Economic Performance (Economic value generated from operations and distributed to stakeholders) • The Group faces challenging economic conditions including fluctuation of raw material prices, inflationary pressure and changes in regulations. • Exposure to foreign currency fluctuations results in volatile returns. • Value creation from robust business fundamentals and established framework attracts investment and funding for financial growth. • Staying abreast with emerging trends to allow the business to remain competitive and explore different opportunities. Business Ethics and Corporate Governance (Robust governance and ethical practices) • Poor Corporate Governance exposes the Group to unethical business practices which may significantly impact the reputation of the Group. • Good corporate governance encourages a conducive working environment and elevates performance within the organisation. • Implementation of policies and guidelines promotes compliance and accountability which encourages systematic execution of business plans and strategies. Regulatory Compliance (Adherence to applicable laws, regulations, guidelines and specifications) • The growing pressure to enhance ESG initiatives may toughen the business operating environment as more regulatory requirements are introduced. • Engagement with regulatory authorities and aluminium forums can increase the preparedness of the Group towards local and global regulatory requirements, minimizing business disruptions. Responsible Sourcing (Sustainable supply chain management) • Poor supplier assessment and due diligence may result in engagement of suppliers who are non-compliant towards ESG standards. • Customer and supplier base may increase as they are more willing to work with the Group, reducing concentration risk. Product Quality and Customer Satisfaction (Production of aluminium goods that meet customers’ needs, and industry standards) • Frequent occurrences of product defects or noncompliances towards customer requirements may damage the reputation of the Group, reducing our customer base. • Process improvements utilising automation can reduce the occurrence of quality defects and drive product innovation. Caring for the Planet Climate Change (Efforts to manage the impacts of climate change and minimise GHG emissions and energy consumption) • Rising concern towards climate change may result in GHG emission targets being lowered. • The higher frequency of natural disasters may impact the operations and damage assets of the Group, incurring high financial losses. • Better adaptation of regulatory requirements towards climate change places the Group at an advantage in this challenging and competitive business environment. • Exploring new methods of aluminium production to reduce emissions in the production process. ANNUAL REPORT 2022 96
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